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Article
Publication date: 25 April 2024

Xiaoyong Zheng

While previous research has demonstrated the positive effects of digital business strategies on operational efficiency, financial performance and value creation, little is known…

Abstract

Purpose

While previous research has demonstrated the positive effects of digital business strategies on operational efficiency, financial performance and value creation, little is known about how such strategies influence innovation performance. To address the gap, this paper aims to investigate the impact of a firm’s digital business strategy on its innovation performance.

Design/methodology/approach

Drawing on the dynamic capability view, this study examines the mechanism through which a digital business strategy affects innovation performance. Data were collected from 215 firms in China and analyzed using multiple regression and structural equation modeling.

Findings

The empirical analysis reveals that a firm’s digital business strategy has positive impacts on both product and process innovation performance. These impacts are partially mediated by knowledge-based dynamic capability. Additionally, a firm’s digital business strategy interacts positively with its entrepreneurial orientation in facilitating knowledge-based dynamic capability. Moreover, market turbulence enhances the strength of this interaction effect. Therefore, entrepreneurial-oriented firms operating in turbulent markets can benefit more from digital business strategies to enhance their knowledge-based dynamic capabilities and consequently improve their innovation performance.

Originality/value

This study contributes to the understanding of how a firm’s digital business strategy interacts with entrepreneurial orientation in turbulent markets to shape knowledge-based dynamic capability, which in turn enhances the firm’s innovation performance.

Details

Journal of Knowledge Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1367-3270

Keywords

Open Access
Article
Publication date: 14 February 2024

Santiago Gutiérrez-Broncano, Jorge Linuesa-Langreo, Mercedes Rubio-Andrés and Miguel Ángel Sastre-Castillo

This article focusses on the hybrid strategy, a simultaneous combination of cost leadership and differentiation strategy. The study aims to examine the impact of hybrid strategy…

Abstract

Purpose

This article focusses on the hybrid strategy, a simultaneous combination of cost leadership and differentiation strategy. The study aims to examine the impact of hybrid strategy on firm performance through its anticipated positive effects on process and product innovation. In addition, we study the moderating role of adaptive capacity in the direct relationships of hybrid strategy with process and product innovation.

Design/methodology/approach

Structural equation modelling was used to analyse 1,842 Spanish firms with fewer than 250 employees. We randomly selected small and medium-sized enterprises (SMEs) operating in Spain from the Spanish Central Business Directory (2021) database. The overall sample design was based on stratified sampling.

Findings

We found that hybrid strategy is positively related to firm performance and to process and product innovation. Additionally, in firms implementing hybrid strategies, process innovation fostered firm performance. Finally, adaptive capacity strengthened the relationships of hybrid strategy with process and product innovation. This sheds light on how and when hybrid strategy is most effective in fostering SME performance.

Practical implications

We highlight that SMEs need to establish strategies that use diverse resources and capabilities and not just generate competitive advantage using one strategy (cost leadership or differentiation strategy). This requires an agile and flexible systems and structures.

Originality/value

Our research provides novel results by proposing the adoption of hybrid strategies instead of pure strategies (cost leadership and differentiation strategy) as a way for SMEs to survive during crises. Unlike “stuck in the middle” strategies, our study demonstrates the importance of hybrid strategies in a comprehensive model that links them to innovation and firm performance, with adaptive capacity being a determining factor.

Details

European Journal of Innovation Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 5 July 2023

Yanmei Xu, Yanan Zhang, Ziqiang Wang, Xia Song, Zhenli Bai and Xiang Li

Unlike traditional industries, the e-cigarette is an epoch-making innovative product originating in China and occupying an absolute competitive advantage in the international…

Abstract

Purpose

Unlike traditional industries, the e-cigarette is an epoch-making innovative product originating in China and occupying an absolute competitive advantage in the international market. The traditional A-U model describes the laws and characteristics of technological innovation in developed countries. In contrast, the inverse A-U model depicts the process of “secondary innovation” in late-developing countries through digestion and absorption. This paper aims to find out that if the e-cigarette, as a “first innovation” industry in a late-developing country, conform to the A-U model or conform to the “inverse A-U model”.

Design/methodology/approach

This paper takes the patent data of e-cigarettes from 2004 to 2021 as the research object, and uses Python’s Jieba segment words to divide product innovation and process innovation, and then uses statistical analysis methods to conduct empirical analyses on these data.

Findings

Thus, an improved A-U model suitable for the e-cigarette industry is proposed. In this model, product innovation in the e-cigarette industry appeared earlier than process innovation, but the synchronous development of product and process innovation is not lagging. The improved A-U model in the e-cigarette industry is not only different from the traditional A-U model but also does not conform to the inverse A-U model.

Research limitations/implications

It is conducive to expanding and clarifying the theoretical contribution and applicable boundaries of the A-U model and has sparked thinking and exploration of the A-U model in e-cigarettes and emerging industries.

Practical implications

On this basis, suggestions on the development path and countermeasures of the e-cigarette industry are put forward.

Originality/value

Based on the e-cigarette industry, this paper takes patents as the research object and provides the method of dividing product innovation and process innovation, and proposes an A-U model suitable for the e-cigarette industry on this basis. By comparing the traditional A-U model with the inverse A-U model in latecomer countries, the background and causes of e-cigarette A-U model heterogeneity are analyzed from different stages and overall morphology. Based on this, the heterogeneity characteristics of e-cigarette innovation are summarized and sorted out.

Details

Nankai Business Review International, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-8749

Keywords

Article
Publication date: 26 May 2023

Giang Hoang, Huong Nguyen, Tuan Trong Luu and Thuy Thu Nguyen

To achieve business success in a competitive market, hospitality firms are urged to search for different ways to enhance the firms' innovation capabilities. Drawing on dynamic…

Abstract

Purpose

To achieve business success in a competitive market, hospitality firms are urged to search for different ways to enhance the firms' innovation capabilities. Drawing on dynamic capability theory, this study examined the role of entrepreneurial leadership in promoting product and process innovation through the mediating effect of innovation strategy and the moderating effect of knowledge acquisition.

Design/methodology/approach

Data were collected through a time-lagged (two waves, two months apart) survey from 137 managers and 322 employees working in 103 Vietnamese hotels. Structural equation modeling (SEM) was used to test the proposed hypotheses in our conceptual model.

Findings

The findings revealed that entrepreneurial leadership is positively associated with both product and process innovation. In addition, these relationships are mediated by innovation strategy. While the relationship between innovation strategy and product innovation is moderated by knowledge acquisition, evidence was not obtained for the moderation effect of knowledge acquisition on the link between innovation strategy and process innovation.

Originality/value

The findings advance innovation and leadership literature by identifying the roles of entrepreneurial leaders in managing an organization as a dynamic system and developing appropriate innovation strategy to adapt to rapidly changing environments. In addition, this study offers important implications for hospitality firms that are investing in innovation activities and are seeking ways to promote the firms' innovation of products and processes.

Details

Journal of Service Theory and Practice, vol. 33 no. 4
Type: Research Article
ISSN: 2055-6225

Keywords

Article
Publication date: 3 August 2022

Constantin Bratianu, Dan Florin Stănescu and Rares Mocanu

The purpose of the present research is to introduce a combined framework that integrates innovative work behavior, product innovation process and customer knowledge management;…

1105

Abstract

Purpose

The purpose of the present research is to introduce a combined framework that integrates innovative work behavior, product innovation process and customer knowledge management; then, to explore the mediating effect of customer knowledge management in the relationship between innovative work behavior and the product innovation process.

Design/methodology/approach

The basis for the present research is a cross-sectional design. Data collection from 154 employees occurred using the following structured questionnaires: Customer Knowledge Management (CKM), Innovative Work Behavior (IWB) and Product Innovation Process (PIP). Data processing used SPSS version 26.0, including the PROCESS (3.5) macro analysis.

Findings

The results show positive relationships between innovative work behavior and the product innovation process (r = 0.420, p < 0.01). Pearson's correlation shows a coefficient of 0.42, meaning that 42% of the variations in perceived product innovation are due to variations in innovative work behavior. The second condition of the mediation test involved testing the relationship between the independent variable (Innovative Work Behavior) and the mediating variable (Knowledge Management) and showed a significant relationship (r = 0.272, p < 0.01). The findings suggested that knowledge management that other determinants supported, such as collaboration in idea exploration, idea championing and encouragement of participation in idea implementation, significantly contributed to the product innovation process (r = 0.509, p < 0.01). The bootstrapping method confirmed that innovative work behavior supports product innovation through the mediation of customer knowledge management (z = 3.01, p = 0.002).

Research limitations/implications

The cross-sectional design, along with the relatively low number of participants and the self-reporting nature of the questionnaires, represent the current study's main limitations. Developing the research model could integrate new variables, such as customer co-creation processes, performance-based compensation, employee citizenship activities and transformational leadership.

Practical implications

This research has both theoretical and practical implications. These emphasize the importance of further investigation into the factors influencing companies' innovation processes. They also provide managers with a means of finding a fit between the deployment of customer knowledge mechanisms and the achievement of innovative workplace behavior, to improve innovation process efficiency.

Originality/value

The current study broadens the empirical research area of customer knowledge management and its impact on both innovative work behavior and the product innovation process, particularly in knowledge-intensive market scenarios that require organizations to be innovative.

Details

Kybernetes, vol. 52 no. 11
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 13 April 2023

Mahmoud Abdelaziz Ahmed Abdelaziz, Jiani Wu, Changwei Yuan and Mohamed Ahmed Ghonim

In light of the current challenges in the business environment, firms, particularly those involved in supply chains, must foster innovation. In this context, the current study…

Abstract

Purpose

In light of the current challenges in the business environment, firms, particularly those involved in supply chains, must foster innovation. In this context, the current study employs the theory of dynamic organizational capabilities (DOCs) to track supply chain learning capabilities (SCLCs) and independently uncover their relationship to innovation at both the product and process levels. Similarly, the study intends to investigate the influence of technological turbulence (TT) on these relationships as a moderating variable.

Design/methodology/approach

The data were gathered using in-person interviews with 189 CEOs with some supply chain management proficiency from small and medium-sized enterprises (SMEs) in the industrial zones of eastern Egypt. The study used a survey approach to collect data, and the SEM-PLS technique was utilized to analyze the data.

Findings

Study findings revealed that SCLCs positively affect product and process innovation. In addition, TT positively moderates the relationship between SCLCs and product and process innovation, except for risk-taking capability. Further theoretical and practical implications are derived from the study findings.

Originality/value

This research adds to the knowledge of the dynamic capabilities theory (DCT), which affects how firms interact with their external environment. Studying learning capabilities are employed as essential competencies to counterbalance high levels of TT in the external environment in terms of innovative performance and vice versa if firms do not attempt to strengthen their dynamic learning capabilities in supply chains. In addition, this study contributes to the literature by studying learning capabilities from the external perspective, where SCLCs are being developed as a new variable to improve innovation.

Details

Journal of Manufacturing Technology Management, vol. 34 no. 5
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 21 June 2011

Daniel I. Prajogo and Christopher M. McDermott

This paper aims to examine the relationship between the four cultural dimensions of the competing values framework (CVF) (group, developmental, hierarchical, and rational…

12910

Abstract

Purpose

This paper aims to examine the relationship between the four cultural dimensions of the competing values framework (CVF) (group, developmental, hierarchical, and rational cultures) and four types of performance: product quality, process quality, product innovation, and process innovation. Theoretically, this represents the contrasts among the four quadrants of CVF in terms of their respective outcomes, with quality and innovation reflecting the contrast between control and flexibility orientations, and product and process reflecting the contrast between external and internal orientations.

Design/methodology/approach

Data were collected from 194 middle and senior managers of Australian firms who had knowledge of past and present organizational practices relating to quality and innovation‐related aspects in the organization.

Findings

Developmental culture was found to be the strongest predictor among the four cultural dimensions, as it shows relationships with three of the performance measures: product quality, product innovation, and process innovation. Rational culture shows a relationship with product quality, and along with group and hierarchical cultures, it also plays a role in predicting process quality.

Practical implications

The results provide key insights for managers to appropriately understand the fit between the culture and the strategic direction of the firm. The findings also encourage firms to appreciate the balanced view on what seems to be multiple cultural characteristics within the same organization.

Originality/value

By simultaneously examining the relationships between different cultural dimensions and different types of performance, this paper extends the previous empirical studies which linked CVF with a specific measure of performance.

Details

International Journal of Operations & Production Management, vol. 31 no. 7
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 18 June 2019

Hariyati Hariyati, Bambang Tjahjadi and Noorlailie Soewarno

The purpose of this paper is to examine the mediating effect of intellectual capital (IC), management accounting information systems, internal process performance and customer…

3583

Abstract

Purpose

The purpose of this paper is to examine the mediating effect of intellectual capital (IC), management accounting information systems, internal process performance and customer performance (CP) on the relationship of strategies with financial performance (FP).

Design/methodology/approach

The population in this research was medium and large manufacturing company business units in Java. The business unit as the unit of analysis in this research is part of the organization that: is responsible for the production and marketing of a product or set of products; is formed by product type; has its own competitors which are different from competitors of other business units or divisions within a parent company; and has a manager who is responsible and has authority over the planning and implementation of strategies to achieve the specified profit target.

Findings

An innovation strategy that includes product innovation, process innovation and technology has an impact on FP if there is a good internal process performance, reliable management accounting information system and good CP. The internal process performance, which includes operations management processes, customer management processes, innovation processes and regulatory and social processes, optimizes the relationship of the strategy with FP. In this study, IC does not affect CP and internal process performance, nor does the management accounting information system affect FP. However, information systems affect FP through internal process performance and CP.

Originality/value

The originalities of this study are: the use of the continuous innovation strategy in an integrated manner between product innovation and process and information technology – this has never been conducted by other researchers, especially in Indonesia; the use of IC, management accounting information systems, internal process performance and CP as mediating variables; the use of an integrative approach by including variables of IC, management accounting information systems and non-FP as contextual variables related to contingency approaches that have never been conducted in previous research; the modeling of new related concepts with the one developed in the balanced scorecard; and using single mediating and multiple mediating on the influence of sustainable innovation strategies on FP.

Details

International Journal of Productivity and Performance Management, vol. 68 no. 7
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 29 March 2022

Qingwen Bo, Bo Zou and Jinyu Guo

Developing multigenerational products through iteration helps enterprises cope with environmental uncertainty and maintain lasting competitive advantages in a globally competitive…

Abstract

Purpose

Developing multigenerational products through iteration helps enterprises cope with environmental uncertainty and maintain lasting competitive advantages in a globally competitive environment. From the knowledge integration perspective, this study aims explore how enterprises achieve multigenerational product innovation.

Design/methodology/approach

An exploratory case study design is used to explore the multigenerational product innovation process.

Findings

This study proposes a model of the multigenerational product innovation process and shows that knowledge integration includes two important parts: the internalization of external knowledge and intergenerational knowledge integration. This study further conclude that multigenerational innovation has three main channels: rapid iteration, continuous reflection and coordination.

Originality/value

First, this study presents a theoretical model of the process of multigenerational product innovation, including triggers, knowledge integration, learning systems and outcomes, and further enhances our understanding from product innovation to multigenerational product innovation. Second, this study contributes to the literature on the multigenerational product innovation process by revealing the knowledge integration process of the internalization of external knowledge and intergenerational knowledge integration.

Details

Chinese Management Studies, vol. 17 no. 2
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 20 September 2019

Mercedes Segarra-Ciprés, Ana Escrig-Tena and Beatriz García-Juan

The purpose of this paper is to analyze the degree to which employees’ proactive behavior contributes to innovation performance in firms operating in high-technology sectors…

1819

Abstract

Purpose

The purpose of this paper is to analyze the degree to which employees’ proactive behavior contributes to innovation performance in firms operating in high-technology sectors. Despite the benefits of these behaviors for individuals and organizations, few studies have analyzed the contextual conditions that enable firms to capture their value in order to improve innovation performance. Drawing on the interactionist perspective, the authors also examine the extent to which informal and formal controls, such as perceived support for innovation and innovation process formalization, can facilitate the contribution of proactive behaviors to improve innovation performance (product and process innovation).

Design/methodology/approach

Based on an empirical study with a sample of 173 firms operating in chemical and information technology service sectors, hierarchical regression analysis was used to test the relationship between employees’ proactive behavior and innovation performance, and the moderating effects of informal and formal controls.

Findings

The results reveal a positive and significant association between proactive behaviors and product and process innovation performance. Both control mechanisms positively moderate the association between proactive behavior and product innovation, but no moderating role was found for process innovation. Moreover, rather than inhibiting innovation performance, innovation process formalization is positively associated with innovation. More specifically, a curvilinear relationship was found, which implies that when the level of formalization is high, it is able to improve product and process innovation.

Practical implications

The findings suggest that managers should consider proactive behavior in selection processes and performance management, and should cultivate a climate to support innovation and establish formal controls for innovation as a way to channel employees’ initiatives into product innovation.

Originality/value

This study contributes to the theoretical and managerial understanding of the extent to which proactive employees and organizational controls are able to enhance innovation in a technologically dynamic context.

Details

European Journal of Innovation Management, vol. 22 no. 5
Type: Research Article
ISSN: 1460-1060

Keywords

1 – 10 of over 109000